Accounting Standards and Their Importance AS-1: DISCLOSURE OF ACCOUNTING POLICIES The following is the text of the Accounting Standard (AS) 1 issued by the Accounting Standards Board‚ the Institute of Chartered Accountants of India on ’Disclosure of Accounting Policies’. The Standard deals with the disclosure of significant accounting policies followed in preparing and presenting financial statements. AS-2: VALUATION OF INVENTORIES A primary issue in accounting for inventories is the determination
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reform and delayed the process all to the benefit of the businesses it should be regulating. “Fraud has never been legal‚ so why has it not been prosecuted?” (Prasch) Renewed interest of ethical issues in the accounting profession is due to scandals involving accounting fraud‚ i.e. Enron‚ WorldCom‚ and Tyco. “Client pressure to present a favorable financial picture of a corporation’s health may lead to ethical breaches” (Adkins & Radke) “New calls for regulations…are specifically concerned
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Accounting Cycle Intermediate Financial Accounting ACC/421 July 11‚ 2011 Accounting Cycle An accounting cycle is a sequence of six steps in the processing of financial transactions (from the time they occur to their inclusion in financial statements) pertaining to an accounting period. These steps are: (1) analyzing the transactions as they occur‚ (2) recording them in the journals‚ (3) posting debits and credits from journal entries to the general ledger‚ (4) adjusting the assets with
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Importance of accounting ethics Ethics is a branch of philosophy that judge human beings on wrongs and rights concerned with the nature of value and the standards by which human actions can be judged .The term is also applied to any system or theory of moral values or principles. Accounting is the mechanism that offers information regarding the financial position of the organization or business. This type of information is critical to investors as it provides them with important and detailed
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Accounting is very much connected with our personal lives in so far as it is in respect of every business. We all with intent or unknowingly generate accounting ideas in a way when we plan what we will do with money. We need to plan how much money will be spent whilst how much of it will be kept back. What is through this activity is a budget gets prepared. And we all are familiar with this concept - which is universally acceptable‚ that money must be spent cautiously. The same is true of a business
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Introduction The purpose of management accounting in the organization is to support competitive decision making by collecting‚ processing‚ and communicating information that helps management plan‚ control‚ and evaluate business processes and company strategy. The interesting thing about management accounting is that it is rare to find an individual within a company with the title of “management accountant.” Often many individuals function as accountants within the organization‚ but these individuals
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The world of accounting opens doors of opportunity for investors‚ stockholders and many businesses and organizations. However‚ accountants must follow guidelines established by “The American Institute of Certified Public Accountants”. (AICPA) Council designated the Federal Accounting Standards Advisory Board or (FASAB) as the body that establishes generally accepted accounting principles (GAAP). Accounting Standards GAAP is considered to be collection of methods used to prepare‚ process and
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Purpose and Scope of Study Bandon Group is a family owned distributor of office equipment. It is famous for its good customer service‚ technical support‚ and innovative products‚ and excellent in providing products with quality and services at cost-effective price (Summer‚ 2005). The Group now has four divisions‚ and they decentralize to meet the different needs of their local markets. Corporate headquarters handles the central administrations and information systems support. Bandon Group‚ Inc
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Case Overview: MidWest Office Product was a regional distributor of office supplies to institutions and commercial businesses. The company offered a comprehensive product line like simple writing implements and fasteners to specialty paper for modern high-speed copiers and printers. Warehouse personnel in the company’s distribution center unloaded truckload shipments from manufactures‚ and moved the cartons into designated storage location until customers request the items. Typically‚ the company
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The importance of accounting to the stakeholders of an organisation Accounting must be understood as a complete‚ consistent‚ logical system for collecting and processing data on the assets of the company and its activities‚ as well as the presentation of economic and financial information. The primary objective of accounting is the development and provision of information about assets components and conducted by the company business. This information is used primarily by: * Board business
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